What does SERP stand for?

Example 7: Assume the same facts as in Example 1, except that A earns $400,000 in total base salary, and X had established a nonqualified supplemental executive retirement plan (SERP) for A's deferred executive remuneration.

The policy is ideal for a variety of applications including: Supplemental Retirement Income, Bonus Plans, Deferred Compensation Plans, and Supplemental Executive Retirement Plans.

Now, he'll leave with a pension plan and supplemental executive retirement plan that totaled $23.

Elimination of "single trigger" change-in-control provisions * Reducing change-in-control gross-up payments slightly if excise tax avoided * Tallying termination benefits for top executives under different scenarios * More even-handed document drafting (not always in executive's favor) * Taking long-term incentives out of supplemental executive retirement plans (SERPs) and severance * Executive reimbursement for personal use of corporate aircraft at net operating cost * Eliminating gross-ups from perquisites * Voluntary expanded proxy disclosure beyond SEC "letter of the law" * De-emphasis of competitive pay surveys * Maintaining accountability for failures .

Despite the popular tax break side of the legislation, the new law turns on deferred compensation plans, Supplemental Executive Retirement Plans (SERPS) and discounted stock options which, in the past, have been relatively free from scrutiny.

After the uproar, Delta canceled the final payment to participants in its supplemental executive retirement plan and discontinued the program.

For instance, Kmart quit paying several retired executives money under its supplemental executive retirement plan.

EXECUTIVE SUMMARY * WHILE NONQUALIFIED SUPPLEMENTAL EXECUTIVE retirement plans (SERPs) are a tax-efficient way to restore benefits lost due to the limits in IRC sections 415 and 401(a)(17), they are not the best way to transfer wealth to the next generation.